Erich Schwartzel on the aforementioned Disney+:
Disney needs attention-grabbing shows and movies so it can rapidly build a subscriber base to make up for revenue lost when it takes its movies and television shows off Netflix. In addition to spending hundreds of millions of dollars to build the Disney+ service, Disney expects to lose about $150 million a year in operating income as it pulls its programming off Netflix, executives said in March.
That’s an about-face from the early days of Netflix, when Disney was so happy to pocket the stream of licensing fees that executives gave the company a nickname: “our heroin dealer.”
The $150M number immediately jumps out, but actually, for a company at Disney scale, it makes this a pretty easy call. With Disney+, they're trying to upgrade their IP pennies to dollars.Read more...